Pay P2-B fine, SC orders MWSS, Maynilad, Manila Water

MANILA, Philippines — The Supreme Court (SC) yesterday imposed massive fines on the government’s Metropolitan Waterworks and Sewerage System (MWSS) and private water concessionaires Maynilad and Manila Water for noncompliance with the Clean Water Act.

Voting 14-0, the SC ordered MWSS and Maynilad to pay P921,464,184, with Manila Water and MWSS ordered to pay the same amount.

“Maynilad shall be jointly and severally liable with the MWSS for a total amount of P921,464,184 covering the period May 7, 2009 to date of promulgation,” SC spokesman Brian Keith Hosaka said.

“Manila Water Company Inc. shall be jointly and severally liable with MWSS for the same amount and period,” he added.

MWSS, Maynilad and Manila Water were supposed to provide wastewater treatment facilities and to connect sewage lines in all establishments, including households, to an available sewerage system within five years after effectivity of the law in 2004.

Hosaka explained the fine covers the period of May 7, 2009, five years after the Clean Water Act was enacted, up to yesterday when the decision was promulgated.

The SC ordered the MWSS and the two water concessionaires to pay within 15 days from receipt of the decision.

The high court clarified that even if the petitioners complied with the decision to pay the fine within 15 days, they would still be fined the initial amount of P322,102 per day subject to further 10 percent increase every two years as provided under Section 28 of the Clean Water Act, until full compliance with Section 8 of the law.

MWSS chief regulator Patrick Ty said he has no idea on the decision of alleged violation of the Clean Water Act of the two companies. 

“I have not heard about it. I have yet to receive a copy of the decision so I really don’t know,” Ty said.

“It is actually my first time to hear about such imposition of penalty,” he added. 

Ty, however, maintained the water shortage in the last few months could not possibly be the cause as the Clean Water Act is more on the sewerage system.

“I think it’s totally different. We would have to study the legal basis once we receive a copy,” he said. 

Both concessionaires Manila Water and Maynilad have yet to issue statements.

The SC affirmed the ruling of the Court of Appeals (CA) finding MWSS, Maynilad and Manila Water in violation Section 8 of the Clean Water Act.

Maynilad and Manila Water separately sought to appeal the CA decision with the secretary of the Department of Environment and Natural Resources (DENR) and with MWSS before the Pollution Adjudication Board.

The SC consolidated the petitions and affirmed the decision of the CA allowing DENR in 2009 to impose a fine on MWSS, Maynilad and Manila Water for failure to comply with Republic Act 9275.

The DENR imposed on MWSS and the two water concessionaires a P29.4-million fine for the period May 7 to Sept. 30, 2009 and P200,000 per day thereafter for failure to fulfill their obligations under RA 9275.